Credit cards are widely used to effect payment. The credit cards are often read by a point of sale terminal which is connected via a telephone line to a banking database. Once a credit card has been read, the point of sale terminal interrogates the banking system database to determine if the card holder has sufficient funds to effect payment.
Another form of card, known as a smartcard, contains a computer chip which can be “loaded” with a certain amount of money. When such a card is used to effect payment, the balance loaded within the computer chip is reduced.
Both the credit card and the smartcard do not automatically provide card holders with details of the balance of their accounts. Furthermore credit card fraud is rife. In many cases, the only form of security associated with credit cards is the signature of the card holder, which can be relatively easily forged.